Central Bank renews transitory measures on management and measurement of banking liquidity
On June 9, 2020, it was published in the Official Gazette the resolution No. 2313-02-200604 of the Central Bank of Chile, issued on its council’s meeting held on June 4, 2020.
By means of this resolution, the Central Bank of Chile has renewed, for 90 additional days, the extraordinary and transitory measures on management and measurement of banking liquidity position, which had been adopted on its special meeting No. 2297E, held on March 26, 2020.
In general terms, these measures were materialized in the introduction of a new article 12 ter to the Chapter III.B.2.1 of the Financial Regulations Compendium of the Central Bank of Chile, pursuant to which, upon contingency events, the Central Bank of Chile’s council may increase flexibility in, or suspend the application of, the limits set forth for term mismatches and / or for measuring the liquidity coverage ratio, as per the terms set forth in said Chapter.
The reason of the abovementioned is the continuity of the extraordinary circumstances that motivated the issuance of the referred resolution, in the context of the global pandemic due to the coronavirus Covid-19.
If you have any questions regarding the matters discussed in this news alert, please contact the following attorneys or call your regular Carey contact.
+56 2 2928 2216
This news alert is provided by Carey y Cía. Ltda. for educational and informational purposes only and is not intended and should not be construed as legal advice.
Carey y Cía. Ltda.
Isidora Goyenechea 2800, 43rd Floor
Las Condes, Santiago, Chile.